The building materials sector in Saudi Arabia is currently witnessing a significant surge, with the investment volume in 2023 reaching SR336 billion ($89.5 billion), marking a 0.9 percent increase from 2022. The National Industrial and Mining Information Center, under the Ministry of Industry and Mineral Resources, reported that 183 licenses were issued for the sector in 2023, compared to 132 in 2022.

This growth aligns with Saudi Arabia's strategic initiative to diversify its economy away from oil and concentrate on sectors such as tourism, entertainment, technology, and renewable energy. Consequently, there is a crucial need for developing infrastructure to support these emerging industries.

The report also highlighted a 5.6 percent increase in the number of factories in the sector, reaching 2,065 in 2023. Specifically, building material facilities within industrial cities rose from 450 in 2022 to 483 in 2023, while those established outside industrial cities reached 1,582 factories, reflecting a 5 percent growth.

The workforce in the building material sector expanded to 144,745 employees by the end of November 2023, compared to 134,075 in 2022. Notably, the number of Saudi workers in the sector increased by 17 percent, reaching 40,854 by the end of November 2023.

Moreover, the report disclosed that the total number of authorized net loans for construction technology projects from 2016 to 2023 amounted to 25 loans for financing 24 projects, with the Saudi Industrial Development Fund approving net loans totaling SR1.119 billion.

In a November statement, Jerry Todd, the head of the National Development Division at the Public Investment Fund, shared insights during the Future Investment Initiative in Riyadh. Todd mentioned that Saudi Arabia's construction sector has projects worth SR8 trillion in the pipeline for the next eight years. He emphasized the rapid growth expected in the well-established construction and building material sector, with approximately SR3 trillion allocated for building projects at the PIF level and about SR8 trillion at the national level over the next eight years.